Aronson Capital Partners is pleased to announce the acquisition of Force 3, Inc. (“Force 3” or the “Company”) by Sirius Computer Solutions, Inc. (“Sirius”), a portfolio company of Kelso & Company. ACP served as the exclusive financial advisor to Force 3 in this transaction.
Founded in 1991, Force 3 is recognized across the federal sector as a leading cyber security and networking solutions provider. With approximately 170 employees and $260 million in annual revenue, Force 3 will strengthen Sirius’ solutions portfolio in the areas of information security, software-defined networking, secure collaboration, enterprise networking, and data center solutions. Mike Greaney, Force 3 CEO, remarked, “Combining forces with Sirius helps Force 3 take the next step in accelerating our vision. Together, we will extend our geographic reach, solution offerings and networking capabilities in an industry that is very dynamic and fast-paced.”
Sirius Computer Solutions was founded in 1980 and is headquartered in San Antonio, TX. It has approximately 1,700 employees and more than 5,000 active clients across the United States. As a national IT solution provider, Sirius partners with many of the same strategic technology leaders as Force 3, including Cisco, Citrix, Dell, EMC, NetApp, Palo Alto, Splunk, VMware – and is also IBM’s largest solutions provider worldwide. Sirius was acquired by Kelso & Company, a New York City based private equity firm, in 2015.
We believe this transaction illustrates several key trends in the government technology market:
- The evolving cyber security threat continues to drive M&A interest in targets that have cleared engineering talent focused on securing the network;
- There is renewed interest in federal acquisition targets by commercially focused buyers as the government accelerates the adoption of next generation technologies; and
- Vehicle-rich targets with access to key IDIQs and GWACs command significant buyer interest, particularly as a platform investment to rapidly scale a federal business. Specifically, Force 3 is a prime contractor on NETCENTS-2, SEWP V, NIH ECS III, CIO-CS, and ITES-3H
Aronson Capital Partners has served as a trusted strategic advisor for Force 3 for many years and has helped the Company navigate its growth strategy. Force 3 CEO Mike Greaney commented, “The Aronson team provided senior level thought leadership from start to finish and identified a large, commercially focused strategic buyer that will allow us to accelerate our growth strategy. Aronson’s insights, experience, and hands on style were invaluable to our success”.
Aronson Capital Partners is a leading M&A advisor to middle-market defense and government technology solutions providers. For a comprehensive update of industry M&A activity, please read our quarterly newsletter.